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 Larry Tabb

Profile of Larry Tabb

Founder & CEO, TABB Group
Blog Posts: 158

Larry Tabb is the founder and CEO of TABB Group, the financial markets' research and strategic advisory firm focused exclusively on capital markets. Founded in 2003 and based on the interview-based research methodology of "first-person knowledge" he developed, TABB Group analyzes and quantifies the investing value chain from the fiduciary, investment manager, broker, exchange and custodian, helping senior business leaders gain a truer understanding of financial markets issues. Larry has published industry research analyzing ECNs; fixed income, equity and foreign exchange trading systems; back-office trade processing systems; broker workstations; analytical trading tools; infrastructure development tools; and foreign and emerging market technologies. He has written extensively on the changing market structure, exchanges and regulatory issues and business continuity as well as new technology trends in cost management, risk management, order management, best execution, algorithmic trading, dark pools, multi- and cross-asset trading, liquidity management, FIX, STP, connectivity, custody and advances in emerging technologies.

Articles by Larry Tabb

Is Financial Services Innovation Dead?

Fear, regulation and tight budgets have reduced investment in IT innovation to unimaginable lows. Will technology innovation return to Wall Street?

Tabb Senate Testimony: First, Do No Harm

In his testimony before the US Senate on Thursday, the Advanced Trading and Wall Street & Technology columnist Larry Tabb answers the question: What, if any, policy changes should be considered by regulators or Congress in order to better protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation?

Tabb Testimony: The Regulators Need Better Tools

In his testimony before the US Senate today, the Advanced Trading and Wall Street & Technology columnist Larry Tabb answers the question: Do regulators have adequate tools to identify and limit manipulative or abusive strategies?

Tabb Senate Testimony: Beware Over-Regulation

In his testimony before the US Senate today, Advanced Trading and Wall Street & Technology columnist Larry Tabb recommends changes to strengthen the markets without killing future profits.

Fragmentation Is Redlining the Markets

Fragmentation is wrecking one of the greatest financial markets of all time, according to Tabb Group’s Larry Tabb. In the wake of the Knight Capital fiasco, he says, the SEC should think hard about the market structure it has created, and do its utmost to rein it in.

How the JOBS Act Will Impact Hedge Funds

The recently passed Jumpstart Our Business Startups Act is about more than jobs. The new regulation is likely to drive consolidation among asset managers, and small hedge funds are in danger of being forced out of the game.

Fixing the Futures Market in the Wake of MF Global

To restore investor faith in the futures market, the CFTC may need to do more than just update the rules that govern the investing of customer cash, says Larry Tabb, founder of Tabb Group.

The Quant Mystique

Why is the mystique of software code more important than the surety of security?

Alpha Bets: Alpha or Beta, Which Are You?

The investing world is bifurcating into two camps: those generating alpha and seeking uncorrelated returns, and those focusing on beta and capturing index- based returns. Which camp you are in makes all the difference in the world.

A Decade of Destruction and Rebirth

The past decade has been tough, but we need to be optimistic and view it for the success it has brought and the opportunity it will bring.

Will You Still Need Me, Will You Still Feed Me?

The rule has an implementation period that potentially could stretch to 11 years, starting with a two-year rule-writing allowance, followed by a two-year implementation period, three one-year extensions, and finally a four-year gradual extended transition for illiquid securities funds and/or products.

Cloud Computing: Just When You Thought It Was Safe

While the business case for cloud computing is compelling, availability is a concern, and Wall Street firms are likely to keep to private clouds for transactional infrastructure, writes Larry Tabb.

Restarting the Engines of Growth

The process of becoming a public company is broken. The SEC needs to reform the rules to revive the stalled IPO market and spur growth.

Algo Testing Mandate a Solid, But Impractical Idea

CFTC commissioner Bart Chilton recently proposed a bold idea: Exchanges and regulators should test trading algorithms before they go to market and perhaps award them a "Good Housekeeping Seal of Approval" before launch.

The Demise of the Corporate Data Center

To secure their infrastructure and processes, Wall Street firms have built up castle walls around their data for years. But electronic trading is creating cracks in those walls.

Speed and Market Efficiency: Competition Over Mandate?

When the speed of the price provider and the price taker are not in parity, the market becomes inefficient and seemingly unfair. We can mandate slower markets, a wider quote or faster technologies, or hold market professionals accountable and let competition run its course.

Tabb: HFT, Fat Fingers and Market Insanity

May 6, 2010 saw a complete meltdown of liquidity in a five-minute period of time and whether it was caused by high frequency trading or the lack thereof or it was an algos-gone-wild moment or was caused by a trader fat-fingering an order, we need to get to the bottom of this - and fast.

Regulators, Be Careful What You Wish For

While some change may be necessary, regulators must remember that even the smallest shifts in policy can have wide-ranging and unpredictable effects on the markets.

A New Theory on Market Structure

What happens when economic market theory collides with the fractured, high-speed, low-latency, dark pool insanity that we call the U.S. equity market?

New Financial Regulatory Reform Proposal: 'It's in There'

The Obama administration's new regulatory reform proposal -- which covers everything financial -- is divided into five major categories: firm supervision and regulation, financial market supervision, consumer protection, governmental crisis management tools, and increased global regulatory cooperation.

The Odds of Exchange Migration

Though it may seem like a quick fix, migrating OTC products to exchanges is a process fraught with dangers and problems all its own.

Rethinking Market Regulation

Over the years, regulators and legislators have tinkered with the markets, making it virtually impossible to raise capital, says Larry Tabb.

We Need Industry Leadership Now

As legislators take aim at Wall Street, the industry must seize the opportunity to work with regulators to create guidelines that will benefit everyone, says Special Contributing Editor Larry Tabb.

Why are we still waiting for the $700 billion bailout?

As debate over the $700 billion bailout continues, Larry Tabb, CEO of TABB Group, comments on the need for "bipartisan, unambiguous and morally steadfast leadership ... not a group of folks fiddling around while Rome burns"

Light Needs to be Shed on Variations of Dark Pools

From ownership structures to price formulation to liquidity access, all dark pools are somewhat different, and firms need to understand the unique benefits, challenges and opportunities of trading in each venue.

The Time Has Come for Fixed-Income Electronic Trading

In some regards, nothing has changed in the fixed-income trading space to warrant electronic trading. On the other hand, however, everything has changed, signaling that the time may be right for e-trading.

Opportunities Beckon Amid Economic Turmoil

A shaky economy and the defibrillation of many fixed-income products provide fertile ground for automated trading, fixed-income ECNs and exchanges -- as well as opportunities for those willing to take some calculated risk.

Smart Order Routing Gets Enlightened

The need for increasingly intelligent smart routing is being driven by a more complex execution environment as smart routers of the future will need to be increasingly flexible and multifunctional.

Liquidity Begets Liquidity

Most think of price when thinking of liquidity. But price can be subjective. How long it takes to execute, how definitive the execution is and the probability that the price will change before execution also are key factors.

NYSE Specialist Elimination Is Overdue

The NYSE specialist may soon be eliminated and replaced with designated market makers. But whether these new market intermediaries are effective and profitable is questionable.

The Boston Equity Exchange (BEX) Calls It Quits

The Boston Equities Exchange (BEX) became the first regional exchange to throw in the towel, but the Boston Stock Exchange (BSX) isn't down for the count, says Special Contributing Editor Larry Tabb.

Until high-speed, low-latency technology becomes easier to acquire, install and integrate, there are going to be many disappointed vendors.

Is Multi-Asset Trading Dead on Arrival?

Multi-asset trading shouldn't be written off so quickly. More products are electronically traded, and investors are changing the investment dynamic.

Nasdaq-LSE: Is the Party Over?

Does the apparent death of the Nasdaq-LSE deal spell doom for the transatlantic duo? Are Nasdaq and the London Stock Exchange shark bait, or is this one more step in a chess match being staged on a global scale?

Regaining N.Y.’s Financial Glory?

The SEC's vote to reduce the impact of Sarbanes-Oxley by reducing audit and sign-off requirements on firms' financial controls is a positive step, but will it bring back growth to the U.S.'s financial markets?

Regaining N.Y.’s Financial Glory?

While the easing of Sarbanes-Oxley is something to celebrate, it won't bring the traditionally New York-based investment banking business back home tomorrow.

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